Ex-councilwoman's business owes Houston $45,000 in taxes

Surprise tax bill for ex-councilwomanNeither Lawrence, city were aware family business got improper break

CHRIS MORAN, HOUSTON CHRONICLE |
May 5, 2011

Former City Councilwoman Toni Lawrence's family business has to reimburse the city of Houston $45,000 for property tax breaks it received while she was in office, City Attorney David Feldman confirmed this week.

Documents released in response to a public records request by the Houston Chronicle indicate the city discovered the improper tax break in 2008, the year it was to end and four years into Lawrence's six years on the council. City ordinance prohibits any business in which a council member has an interest from receiving a tax abatement, a reduction in property taxes offered as an incentive to companies to relocate to or to expand in Houston.

Lawrence said she did not know about the prohibition at the time and that she had no idea the business owed the city money until Feldman contacted her last month. Feldman said he was not even aware of the debt until prompted to look into it by the Chronicle's records request.

"If we owe something, we will pay it," Lawrence said Thursday.

She said she recalls the city contacting her about the abatement shortly before she was termed out of her District A seat in 2009, but she thought it was merely an audit to ensure that the company was employing enough people to meet the terms of the abatement agreement.

Lawrence did not commit any intentional wrongdoing, Feldman said, and there will be no penalty for benefiting from the abatement while in office.

"She probably wasn't even aware of the tax abatement," Feldman said. "She was not active in the operation of this company."

Abatement legitimate

The tax break was granted to Glassline Partnership Ltd., a window wholesaler, in 1998, six years before Lawrence took office. The company received the legitimate tax break until Lawrence took office in 2004.

For the first four years of Lawrence's service on the council, however, the company — owned primarily by Lawrence's husband - continued to enjoy reduced property taxes despite the city ban on such an arrangement. Over the period, the company's property taxes were reduced by $45,696.89.

Feldman said he has not yet made a written demand for the money, but has talked to Lawrence by phone.

Formal bill in the works

The former councilwoman, her husband, and CFO Scott Schultz said they have not received a bill nor been told how much the city is seeking.

Asked why the city had waited two to three years to follow up on the back taxes, Feldman said, "We are moving more aggressively in collecting amounts due and owing to the city in this administration than in others before."

Mayor Annise Parker took office in 2010. She inherited a budget with plunging revenue that has prompted the city to shed employees and raise numerous fees.

In February, Parker and Feldman announced the city was stepping up efforts to collect more than $1 billion owed in traffic tickets, library fines, back taxes and delinquent accounts. Parker threatened to boot vehicles, reject permit applications and even file lawsuits to force scofflaws to pay up.